Hampton Machine Tool Company On September 14‚ 1979‚ Mr. Jerry Eckwood‚ vice president of the St. Louis National Bank was considering a loan request from a customer located in a nearby city. The company‚ Hampton Machine Too] Company‚ had requested renewal of an existing $1 million loan originally due to be repaid on September 30. In addition to the renewal of the existin- loan‚ Hampton was asking for an additional loan of $350‚000 for planned equipment purchases in October. Under the terms
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Hampton Machine Tool Company 1. Why can’t a profitable firm like Hampton repay its loan on time and why does it need more bank financing? What major developments between November 1978 and August 1979 contributed to this situation? A/ Hampton Machine Tool Company was unable to repay its loan on time due to several factors. One of such factors is the fact that the stock repurchase‚ for which the loan was initially requested‚ was a major cash disbursement of $3 million. In the period between November
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Executive Summary Hampton Machine Tool Company (HMTC) was founded in 1915 to produce machine tools. Machine tools manufacturing business is highly prone to economic fluctuations. Therefore‚ success of HMTC depends upon success of other related industries. The major customers of the company are aircraft manufacturers and automobile manufacturers. Sales of HTMC boomed during 1960s‚ decreased in the mid 70s and started to recover around 1978 due to the increase in demand of military aircrafts‚ a stable
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Entrepreneurial Finance Eric Wehrly Hampton Machine Tool Company The questions for the Hampton Machine Tool Company are given below. Please prepare for submission questions 1 and 2 only. That is‚ please submit your balance sheet for December 31‚ 1979 and income statement for the four month period‚ September through December 1979‚ requested in question 2 below (your income statement should not be monthly; it should cover the entire four months). Please also prepare‚ but do not submit‚ the
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TOPIC: MACHINE TOOLS India stands 13th in the production and 6th in the consumption of machine tools in the world. The country is set to become a key player in the global machine tools industry with substantial increase in manufacturing of high end machine tools. The Indian machine tool industry has approximately 1000 units in production of machine tools‚ accessories/attachments‚ sub-systems and parts. Threefourth of machine tool producers in India are ISO certified. The market for machine tools
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1)Introduction A machine tool is a powered mechanical device‚ typically used to fabricate metal components of machines by machining‚ which is the selective removal of metal. Machine tools can be operated manually‚ or under automatic control. Early machines used flywheels to stabilize their motion and had complex systems of gears and levers to control the machine and the piece being worked on. Soon after World War II‚ the numerical control (NC) machine was developed. NC machines used a series
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Līga Brūmane Liene Ratniece-Miltiņa Sandeep Menon MIF 1st year Hampton machine tool company case study 1. Why can’t a profitable firm like Hampton repay its loan on time and why does it need more additional bank financing? What major developments between November 1978 and August 1979 contributed to this situation? (ST-1) Hampton has a substantial backlog of outstanding orders from respected customers so they need cash to purchase equipment to maintain production efficiency. In an effort to conserve
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FCF will grow permanently by 4% by year to the infinity‚ we can calculate FCFp as perpetuity: FCFp = FCF2004/(WACC-g) = 54288 So finally‚ we got NPV = 67855 and can calculate EV = NPV + WCR (1999) EV = 81275‚ which is the maximum price for the Hampton Tool‚ that Lycos should be willing
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Agricultural Tools and Machines The development of machines began in the 1890 ’s when the first steam tractor and combine were made in California (Meij 3). There was a need to make more efficient use of the labor; therefore‚ machines were developed ("Agripedia" 2). By 1914‚ the combine started to spread outside of California to the rest of the United States (Meij 4). Then in 1928 it spread to Great Britain and then to the Netherlands after World War II (Meij 4). The development of these machines was affected
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Case #1 CAINSBORO MACHINE TOOLS CORPORATE Question 1. What risks does the firm face? What is the limit of Exhibit 8 in terms of the risk analysis? From the article‚ there are two major risks the company face. First‚ the company’s financial condition is not very good. From 2003 to 2004‚ the gross profit declined from 314‚522 thousands to 257‚759 thousands. This leads the company suffer from an operating loss in 2004. For the first quarters of 2005‚ the board declared no dividend. This
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